Codey: Expanding NJ lottery sales may be the ticket

Saying it would generate more cash for the state, Senate President Richard Codey will push a plan to expand the New Jersey Lottery by selling tickets at big box stores such as Home Depot or Target, adding internet sales and even allowing people to play the games with their cell phones.

Codey (D-Essex) said the Lottery has untapped potential that can help ease New Jersey's fiscal woes over the next decade. He said he believes the state can expand where and how lottery tickets are sold within several months, and without enacting a new law.

"We've got to look at any way we can bring in more revenue," said Codey, who co-sponsored the law that enabled casinos to open in Atlantic City in 1978. "This doesn't cost you anything and the upside potential is tremendous."

Gov. Jon Corzine said yesterday he and Codey have had discussions about some of the possible expansions, which he called "reasonable."

"We run our lottery fairly efficiently, so it's just a matter of how far we want to push the envelope," he said.

Given the economic recession and resulting drop-off in revenues, Corzine said the lottery plan is unlikely to make a major dent in the state's immediate financial struggles.

"I don't think it's going to have major budgetary impact. It might help us keep parks open, but we're not talking about a significant shift in dollars that's going to change the context of the 2008-2009 budget," he said. "It's worthwhile in adding into the mix."

Such a move, however, could draw static from liquor outlets, convenience stores and other smaller businesses that now dominate New Jersey's lottery ticket sales.

The lottery has been a major source of revenue for state government since it began in 1970. It is expected to provide $845 million in the current budget year to pay for programs that benefit veterans, community colleges, school children, the disabled and others. Overall, the lottery is expected to collect about $2.4 billion -- up $530 million from 2000.

However, Codey said after adjusting for inflation, lottery revenues fell slightly over that time, citing Wall Street financial analysts who have advised him on the move. He declined to name the analysts.

Codey said the consultants believe lottery proceeds could be boosted by more than 40 percent over the next decade, which would raise an extra $1 billion in revenues. He could not give a short-term estimate of how much it would immediately generate for state coffers.

New Jersey has the eighth largest revenue-producing lottery in the nation, but last year generated less than one-third the money of New York, the national leader. Pennsylvania ranks just ahead of New Jersey.

Codey said the consultants found that even with 6,100 lottery retailers, New Jersey ranks just 20th in the nation in the ratio of people to places where they can buy lottery tickets.

"We're stagnant. You have to look at the lottery in a new way," Codey said.